Question

What is the sum of the described series? Jessica opened an apparel shop five years ago. In the first year, she made a profit of $3,125. Each year after that, her profit was 20 percent more than in the previous year. What is the total profit Jessica earned in 5 years?

1) $32,400
2) $23,255
3) $7,776
4) $6,480

Answer 1

To find the total profit Jessica earned in 5 years, you need to calculate the sum of the series of her annual profits. Using the given information, the correct answer is $32,400.

Step-by-step explanation:

To find the total profit Jessica earned in 5 years, we need to find the sum of the series of her annual profits.

In the first year, Jessica made a profit of $3,125. Each year after that, her profit was 20 percent more than the previous year's profit.

To calculate the profit for each year, we can use the formula:

Profitn = Profitn-1 + 0.20 * Profitn-1

We can use this formula to calculate the profits for all 5 years and then sum them together to find the total profit.

Using this method, the total profit Jessica earned in 5 years is $32,400. Therefore, option 1) $32,400 is the correct answer.